Lately, we are reading a lot of good economic news about Latin America, specially about South America. It seems that finally, after to struggle too many years to guarantee the economic stabilization, S.A. has found a faster pace in direction to a higher GDP growth, more development with all benefits that this brings to the population, mainly in the labor market, consequently in the rising of wages.
According to a recent ECLAC report published in December, 2010. L.A. and the caribbean will grow 6% in 2010, being South America 6.6%, Mexico and Central America 4.9% and the Caribbean 0.5%.
The L.A. champion in GDP gowth of 2010, is the: 1º Paraguay 9.7%, 2º Uruguay 9.0%, 3º Peru 8.6%, 4º Argentina 8.4%, 5º Brazil 7.7º, 6º Mexico 5.3%, 7º Chile 5.2%.
On the other hand, the highest falls were Haiti -7%, due to earthquake and Venezuela -1.6%.
High levels of world liquidity would push down exchange rates while pushing up commodity prices, which could harm the external accounts and lead to excessive specialization in the production and export of commodities.
According to another report from ECLAC, L.A. growth rate could outstrip the global average this decade(2010-2019). It seems that L.A. has learned from its lost decade of the eighties and from its debt crisis. Panama has got its investment grade in 2010, the others who have already are: Brazil, Chile, Mexico and Peru. The probably next are: Uruguay and Colombia. Colombia is emerging as South America 3º largest oil producer after Brazil and Venezuela.
However to bolster the improvements in the labour market and generate more productive employment, the countries need to identify and remove bottleneck, mainly in the education and to strengthen their macroeconomic policies and their jurisdictional security.
Unemployment in L. A. falls as a result of the economic recovery, equally important is the creation of ¨green jobs¨, particularly in Brazil, Where many houses have been equiped with solar paneled and many persons are working in the recycling industry.
